Research On The Motivation Of Cimc’s Spin-off Listing And Its Impact On Corporate Performance

With the development of the capital market,the attitude of government regulatory authorities towards spin off listings has changed.The number of domestic spin off listings has rapidly increased in a short period of time,but it is still unknown whether the current spin off listings can bring ideal results to enterprises.Following the listing of CIMC Hong Kong and CIMC Enrico on the Hong Kong Stock Exchange,CIMC Group has taken a new step by splitting CIMC vehicles into separate listings on the Hong Kong Stock Exchange.The effect of CIMC Group’s spin off and listing will provide a good reference for other companies interested in spin off and listing.This paper takes the case of CIMC Group’s first split semi-trailer,the CIMC vehicle,being listed separately as the research object,uses the event study method to study the short-term response of the market,uses Tobin Q value to study the long-term response of the market,uses the entropy weighted analysis method to vertically study the financial performance of CIMC Group,and uses the principal component analysis method to horizontally compare the changes in the financial data of CIMC Group,Finally,the impact of the spin off listing on Shenzhen CIMC Group is studied based on non-financial performance.This article uses data from CIMC Group over the past 5 years as a sample.The study found that during the nearly two years of its spin off and listing process,investors were more rational about the performance of CIMC Group’s spin off and listing.The company’s stock price and Tobin Q value have increased,but the increase is relatively small.In the medium to long term,this spin off and listing is a revaluation of the company’s value,increasing its market value;It has opened up new financing channels for the company,reduced the cost of enterprise capital,and helped to improve the company’s comprehensive ability.At the same time,although CIMC Group’s spin off and listing behavior faced the overall downward impact of the market environment,with a significant performance decline in the year of the spin off and listing,it achieved rapid development in a short period of time thereafter.CIMC Group’s spin off and listing behavior has had a positive effect on financial performance that is not wrong.CIMC Group has always adhered to increasing its research and development investment,with the proportion of research and development expenditure continuously increasing.The number of scientific research achievements has also experienced a breakthrough in recent years,and the number of patent applications in 2021 has almost doubled compared to the previous year.Split listing also has a good effect on non-financial performance.Finally,based on the full text,the following suggestions are proposed: in order to effectively improve the performance of the split listed companies,it is advisable to choose strong subsidiaries for split listing in appropriate capital markets;Spin off listing requires attention to the overall operation of the market and industry development status;Develop a reasonable spin off listing plan and select an appropriate spin off listing location;Pay attention to the combination with corporate strategy and avoid blindly following the trend;Pay attention to the improvement of management after the split,and effectively promote the development of the enterprise.